Spot Ethereum ETFs are coming, but ETH derivatives markets are flat – Cointelegraph
Etherprice rallied 12.5% between July 12 and July 15, but strong resistance at $3,500 halted the bullish momentum. The subsequent correction down to $3,400 on July 18 occurred despite the United States Securities and Exchange Commission approving two additional spot Ethereum exchange-traded funds (ETFs). Despite this positive development, Ethers derivatives market has shown little excitement.
The SEC reportedly gave preliminary approval to at least three issuers to begin trading spot Ether ETFs on July 23. A total of eight spot Ether (ETH) ETFs are awaiting final regulatory approval after amendments to the funds S-1 filings.
Bitwise Chief Investment Officer Matt Hougan expects Ethers price to reach $5,000 by the end of 2024, citing its low equivalent inflation rate, lack of significant cost for validators, and 28% supply locked in staking.
Given the total crypto market capitalization gained 43% year-to-date in 2024, it is puzzling why Ethers investors lack bullishness, despite the spot ETH ETF momentum. Furthermore, volumes on Ethereum decentralized applications (DApps) rose 7% in the last 30 days to $221 billion, according to DappRadar data. In comparison, competitor BNB Chain saw a 25% decline in activity, while Solana experienced a 16% drop in volumes.
In terms of DApps deposits, the Ethereum network remains the leader with 17.5 million ETH in total value locked (TVL), equivalent to $59.8 billion, according to DefiLlama data. This metric remained flat from the prior month, while competitors Solana and BNB Chain hold approximately $4.8 billion each.
Additionally, activity in Ethereums layer 2 ecosystem increased, with the aggregate native TVL rising by 8.5% over the past 30 days to $14 billion, according to L2Beat data. Thus, Ethereum onchain data shows no signs of weakness.
From a macroeconomic perspective, the latest US Producer Price Index was 2.6% above the prior year, slightly above the market consensus of 2.3%. This indicates that the US Federal Reserve (Fed) still has work to do to curb inflation, meaning price pressure will continue to hurt demand for a while.
Moreover, Chinas disappointing 4.7% yearly gross domestic product growth could spell trouble for global stock markets.
Additionally, the US Department of Labor reported 243,000 initial jobless claims were filed in the week ending July 13, the highest level since August 2023. The signs of a cooling labor market increase the odds of the US Fed cutting interest rates over the next couple of months, according to Goldman Sachs chief economist Jan Hatzius, as reported by Yahoo Finance.
There is no indication that investors are exiting risk markets, which is evident as the S&P 500 index is only 2% below its all-time high from July 16. Meanwhile, Ethers price needs to gain 43% to surpass the $4,868 mark set in November 2021.
To assess whether crypto traders are gaining confidence, one should analyze the Ether futures premium. In normal markets, these contracts should trade 5% to 10% higher than regular spot markets to account for their extended settlement period.
Related: Bitcoin ETFs have 4-8X more BTC price influence than miners Research
The Ether fixed-month contracts annualized premium, or basis rate, currently stands at 11%, indicating moderate optimism. However, this indicator has not sustained levels above 12% for the past month, which is somewhat concerning given the potential inflows from the upcoming spot ETF launch in the US. For comparison, Bitcoins (BTC) basis rate also stands at 11%, indicating there is no excessive bullishness among Ethereum investors.
Ether bulls might argue that the current lack of confidence leaves room for a surprise if the expectation of strong spot ETF net inflows is confirmed. Still, given that Ethers price failed to rally despite a bullish scenario for risk-on assets, the ETH derivatives metrics point to investors lack of appetite, making a bull run above $4,000 less likely.
This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.
Read more:
Spot Ethereum ETFs are coming, but ETH derivatives markets are flat - Cointelegraph
- 3 Key Drivers Behind Ethereum's 65% Rally: Bernstein - Benzinga - May 14th, 2025 [May 14th, 2025]
- VanEck to compete with BlackRock in tokenized US Treasuries race, launching on Ethereum, BNB, Solana, Avalanche - CryptoSlate - May 14th, 2025 [May 14th, 2025]
- VanEck and Securitize Launch Tokenized Treasury Fund on Ethereum, Solana and Two Other Chains - The Daily Hodl - May 14th, 2025 [May 14th, 2025]
- ETH/USD: Ethereum Shoots Above $2,700, Flexing 50% Gain in Just a Week. Whats Happening? - TradingView - May 14th, 2025 [May 14th, 2025]
- Bitcoin Steady As Ethereum, XRP, Dogecoin Climb On Wednesday Morning - Benzinga - May 14th, 2025 [May 14th, 2025]
- Ethereum Price Forecast: Who's behind ETH's highest daily gain in four years? - FXStreet - May 14th, 2025 [May 14th, 2025]
- Best Ethereum Futures Platforms With Low Fees & High Leverage - Bitcoinist.com - May 14th, 2025 [May 14th, 2025]
- Ethereum Climbs 10% In Rally - Investing.com - May 14th, 2025 [May 14th, 2025]
- Here Are 5 Reasons Ethereum May Reach $12,000 In 2025 Analyst - TradingView - May 14th, 2025 [May 14th, 2025]
- Top 3 Price Prediction Bitcoin, Ethereum, Ripple: BTC steadies after strong weekly rally; ETH & XRP find key support levels - FXStreet - May 14th, 2025 [May 14th, 2025]
- Ethereum Surge Above $2,200 Says Bear Market Is Over, Analyst Calls $5,791 Easy Target - TradingView - May 14th, 2025 [May 14th, 2025]
- Ethereum (ETH) Price: Major Rally Takes Token Within Striking Distance of $3,000 - CoinCentral - May 14th, 2025 [May 14th, 2025]
- Bitcoin, Ethereum, Dogecoin Pop As Inflation Numbers Softer Despite Trump Tariffs: Analyst Says Cocktail For BTC's 'Ballistic' Rise In The Works -... - May 14th, 2025 [May 14th, 2025]
- Ethereum Heats Up to Lead Crypto Higher - The Motley Fool - May 14th, 2025 [May 14th, 2025]
- Ethereum jumps 20% after Pectra upgrade, marking largest gain in four years - The Block - May 14th, 2025 [May 14th, 2025]
- Best Altcoins in May 2026 Will Be Utility Coins as Ethereum Price Prediction Indicates $3,000 Incoming - CoinCentral - May 14th, 2025 [May 14th, 2025]
- If You Bought Your Mom $100 In Bitcoin, Dogecoin And Ethereum Last Mother's Day, Here's How Much She'd Have Today - Yahoo Finance - May 14th, 2025 [May 14th, 2025]
- $477,600,000 Ethereum (ETH) Acquired in Just 6 Days - U.Today - May 14th, 2025 [May 14th, 2025]
- Why the Ethereum Ecosystem Soared on Friday - The Motley Fool - May 14th, 2025 [May 14th, 2025]
- Ethereum Price Prediction $4,000 in Sight as $ETH Rallies 61% in a Month - The Cryptonomist - May 14th, 2025 [May 14th, 2025]
- Grayscale Ethereum Trust (ETHE) Shares Cross Above 200 DMA - Nasdaq - May 14th, 2025 [May 14th, 2025]
- XRP Making Historical Breakthrough, Key Shiba Inu (SHIB) Cross Pushes Market Up, Ethereum (ETH) Not Ready to Give Up - U.Today - May 14th, 2025 [May 14th, 2025]
- Why Is Ethereum Beating Bitcoin With Explosive Gains? - Decrypt - May 14th, 2025 [May 14th, 2025]
- What is RISC-V, and why does Vitalik Buterin want it for Ethereum smart contracts? - Cointelegraph - May 14th, 2025 [May 14th, 2025]
- Ethereum Regains Momentum: Can the Rally Push It to $3,000? - Action Forex - May 14th, 2025 [May 14th, 2025]
- Bitcoin tops $100,000 and Ethereum surges in banner week for crypto - qz.com - May 14th, 2025 [May 14th, 2025]
- Ethereum Price Prediction: Will ETH Finally Break Out and Smash $10k as JetBolt Hype Train Rolls On - - Disrupt Africa - May 14th, 2025 [May 14th, 2025]
- 1 Under-the-Radar Metric That Just Flipped Bullish for Ethereum and XRP - The Motley Fool - May 14th, 2025 [May 14th, 2025]
- VanEck Launches Tokenized US Treasury Fund VBILL on Ethereum, Solana, BNB - The Crypto Basic - May 14th, 2025 [May 14th, 2025]
- Ethereum Price Forecast: Will ETH Rise to $4,000 After Pectra? - Cryptodnes.bg - May 14th, 2025 [May 14th, 2025]
- 3 Reasons Why Ethereum (ETH) Moving to $3,000 - U.Today - May 11th, 2025 [May 11th, 2025]
- Ethereum Price Ready to Surge$2,000 Level Could Be Within Reach - TradingView - May 11th, 2025 [May 11th, 2025]
- Ethereum Price Ready to Surge$2,000 Level Could Be Within Reach - TradingView - May 11th, 2025 [May 11th, 2025]
- Ethereum To Witness Big Breakout In The Next Two Weeks If This Level Holds - TradingView - May 11th, 2025 [May 11th, 2025]
- Ethereum price reclaims $2000: is this the start of a major bull run? - Crypto News - May 11th, 2025 [May 11th, 2025]
- Ethereum Price Prediction: ETH Blast Past $2400 With $5000 In Sight, Experts Suggest Coldware Could Mirror Their Success - CoinCentral - May 11th, 2025 [May 11th, 2025]
- Ethereum Price Prediction: ETH Blast Past $2400 With $5000 In Sight, Experts Suggest Coldware Could Mirror Their Success - CoinCentral - May 11th, 2025 [May 11th, 2025]
- Ethereum price reclaims $2000: is this the start of a major bull run? - Crypto News - May 11th, 2025 [May 11th, 2025]
- Best Crypto to Buy as Ethereum Smashes $2,500: Is Altcoin Season Here? - Modern Diplomacy - May 11th, 2025 [May 11th, 2025]
- Best Crypto to Buy as Ethereum Smashes $2,500: Is Altcoin Season Here? - Modern Diplomacy - May 11th, 2025 [May 11th, 2025]
- Pectra features already in use: Ethereum EIP-7702 wallets roll out - Cointelegraph - May 11th, 2025 [May 11th, 2025]
- Pectra features already in use: Ethereum EIP-7702 wallets roll out - Cointelegraph - May 11th, 2025 [May 11th, 2025]
- Experts Eyeing Remittix (RTX) and Cardano (ADA) Prices Next After Ethereum Skyrockets 30% - TronWeekly - May 11th, 2025 [May 11th, 2025]
- Experts Eyeing Remittix (RTX) and Cardano (ADA) Prices Next After Ethereum Skyrockets 30% - TronWeekly - May 11th, 2025 [May 11th, 2025]
- Ethereum (ETH) Price Prediction for May 8 - U.Today - May 11th, 2025 [May 11th, 2025]
- Ethereum (ETH) Price Prediction for May 8 - U.Today - May 11th, 2025 [May 11th, 2025]
- Cheaply Priced Ethereum token at $0.025 Set For A Parabolic 15,000% Rally In 2025 - MSN - May 11th, 2025 [May 11th, 2025]
- Ethereum developers activate Pectra upgrade with 11 changes to improve UX, validator ops and Layer 2 scaling - The Block - May 11th, 2025 [May 11th, 2025]
- Cheaply Priced Ethereum token at $0.025 Set For A Parabolic 15,000% Rally In 2025 - MSN - May 11th, 2025 [May 11th, 2025]
- Why BlockDAG, Ethereum, XRP & Dogecoin Are the Top Crypto Performers to Watch Right Now - CoinCentral - May 11th, 2025 [May 11th, 2025]
- Ethereum developers activate Pectra upgrade with 11 changes to improve UX, validator ops and Layer 2 scaling - The Block - May 11th, 2025 [May 11th, 2025]
- Why BlockDAG, Ethereum, XRP & Dogecoin Are the Top Crypto Performers to Watch Right Now - CoinCentral - May 11th, 2025 [May 11th, 2025]
- Ethereum Price Prediction: Has ETH Just Kickstarted Altcoin Season? Whales Are Piling Into ETH Tokens - CoinCentral - May 11th, 2025 [May 11th, 2025]
- Ethereum Price Prediction: Has ETH Just Kickstarted Altcoin Season? Whales Are Piling Into ETH Tokens - CoinCentral - May 11th, 2025 [May 11th, 2025]
- Fed holds steady, Bitcoin climbs and Ethereum rolls out major upgrade - Yahoo Finance - May 11th, 2025 [May 11th, 2025]
- Fed holds steady, Bitcoin climbs and Ethereum rolls out major upgrade - Yahoo Finance - May 11th, 2025 [May 11th, 2025]
- Crypto Price Today (May 9, 2025) Bitcoin Tops $104K; Ethereum Skyrockets to $2,400 Ahead of Weekly Closing - The Crypto Times - May 11th, 2025 [May 11th, 2025]
- Crypto Price Today (May 9, 2025) Bitcoin Tops $104K; Ethereum Skyrockets to $2,400 Ahead of Weekly Closing - The Crypto Times - May 11th, 2025 [May 11th, 2025]
- 1 Emerging Trend Could Boost Ethereum for Years and Years - The Motley Fool - May 11th, 2025 [May 11th, 2025]
- Bitcoin Taps $105,000, Ethereum Steady, Dogecoin Falls As US Announces China Trade Deal: Analyst Says BTC In For A 'Price Discovery Uptrend' If It... - May 11th, 2025 [May 11th, 2025]
- Bitcoin Taps $105,000, Ethereum Steady, Dogecoin Falls As US Announces China Trade Deal: Analyst Says BTC In For A 'Price Discovery Uptrend' If It... - May 11th, 2025 [May 11th, 2025]
- Ethereum Ready To Explode Past 4000 Dollars According To Peter Brandt - Cointribune - May 11th, 2025 [May 11th, 2025]
- Ethereum Ready To Explode Past 4000 Dollars According To Peter Brandt - Cointribune - May 11th, 2025 [May 11th, 2025]
- Ethereum and XRP Are Facing Off in This 1 Key Segment. Which Will Win? - The Motley Fool - May 11th, 2025 [May 11th, 2025]
- BlackRock Eyes Tax Breaks With New In-Kind Ethereum ETF Amendment - TronWeekly - May 11th, 2025 [May 11th, 2025]
- BlackRock Eyes Tax Breaks With New In-Kind Ethereum ETF Amendment - TronWeekly - May 11th, 2025 [May 11th, 2025]
- Bitcoin, Ethereum break $100K and $2K as investors shrug off tariff fears - TheStreet - May 11th, 2025 [May 11th, 2025]
- Ethereum and XRP Are Facing Off in This 1 Key Segment. Which Will Win? - The Motley Fool - May 11th, 2025 [May 11th, 2025]
- Bitcoin, Ethereum break $100K and $2K as investors shrug off tariff fears - TheStreet - May 11th, 2025 [May 11th, 2025]
- TRUMP Coin's Crash and Ethereum's Bull Run: Unstaked AI Crypto Presale's Projected 2700% Return Redefines the AI Crypto Sector! - CoinCentral - May 11th, 2025 [May 11th, 2025]
- TRUMP Coin's Crash and Ethereum's Bull Run: Unstaked AI Crypto Presale's Projected 2700% Return Redefines the AI Crypto Sector! - CoinCentral - May 11th, 2025 [May 11th, 2025]
- Ethereum Price Jumps 29%Is $2,700 the Next Bullish Trigger? - The Market Periodical - May 11th, 2025 [May 11th, 2025]
- Ethereum Price Jumps 29%Is $2,700 the Next Bullish Trigger? - The Market Periodical - May 11th, 2025 [May 11th, 2025]
- Why Sei Wants to Cut Cosmos Compatibility, Go All-In on Ethereum - CoinDesk - May 11th, 2025 [May 11th, 2025]
- Unichain surpasses Ethereum as top chain for Uniswap v4 by transaction volume - The Block - May 11th, 2025 [May 11th, 2025]
- Unichain surpasses Ethereum as top chain for Uniswap v4 by transaction volume - The Block - May 11th, 2025 [May 11th, 2025]
- Why Sei Wants to Cut Cosmos Compatibility, Go All-In on Ethereum - CoinDesk - May 11th, 2025 [May 11th, 2025]
- ETH News: Ethereum Preps for Biggest Code Change Since the Merge With Pectra Upgrade - CoinDesk - May 11th, 2025 [May 11th, 2025]
- ETH News: Ethereum Preps for Biggest Code Change Since the Merge With Pectra Upgrade - CoinDesk - May 11th, 2025 [May 11th, 2025]
- Has Ethereum finally found its elevator pitch? - Blockworks - May 11th, 2025 [May 11th, 2025]